SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Litigation Release No. 15695 / April 7, 1998
SECURITIES AND EXCHANGE COMMISSION v. JULIA PECK MOBLEY
Civil Action No. 94-1294 (WBB) (D.D.C.)
The Securities and Exchange Commission today announced the
settlement of a civil injunctive action that the Commission filed
against Julia Peck Mobley. The Honorable William B. Bryant,
Senior United States District Judge, District of Columbia,
entered a final judgment of permanent injunction and other relief
against defendant Mobley on April 6, 1998.
In its complaint, filed June 13, 1994, the Commission alleged
that Mobley engaged in insider trading by purchasing shares of
the common stock of MidSouth Corporation after she was tipped
about pending merger negotiations between MidSouth and Kansas
City Southern Industries, Inc. by co-defendant Sydney Probst, a
lobbyist employed by Kansas City Southern. Probst previously
settled the Commission's case against her. The complaint further
alleged that Mobley provided material, nonpublic information to
co-defendant Rosamond S. Brown about the pending merger
negotiations, and that she recommended that another individual
purchase MidSouth common stock while the merger negotiations were
taking place. (See Litigation Release No. 14123, dated June 13,
1994).
Mobley consented, without admitting or denying the allegations in
the complaint, to a final judgment permanently enjoining her
against future violations of Section 10(b) of the Securities
Exchange Act of 1934 and Rule 10b-5 thereunder, and ordering that
she pay a total amount of $48,692.98, consisting of $18,088 in
disgorgement of trading profits, prejudgment interest thereon of
$8,716.98, and a civil penalty of $21,888, which is equal to the
total trading profit made by Mobley and her tippees.
Separately, co-defendant Rosamond S. Brown has also settled this
case with the Commission. (See Litigation Release No. 15696,
dated April 7, 1998).